Lake Worth Bank Posts Huge Loss

First American Bank and Trust of Lake Worth said on Wednesday that it lost $17.1 million in the third quarter, giving it $22 million in losses so far this year after a $56 million loss last year.

The bank lost $1.44 a share in the latest quarter compared with 17 cents a share in the quarter a year ago, when it lost $1.9 million.

In early October, federal bank regulators repeated their order that the troubled bank raise more capital and reduce its problem loans.

First American estimated its regulatory capital at $33 million as of Sept. 30 and said its stockholder`s equity was a negative $12.7 million.

President John Clark said in October that the regulators` order gives the bank until 1992 to have a capital-to-assets ratio of 7 percent. Federally insured banks, such as First American, are now required to maintain minimum capital of 6 percent.

Based on its $1.4 billion in assets, First American`s ratio was 2.4 percent on Sept. 30.

The bank is seeking new capital, which is an institution`s cushion against losses.

Clark, the bank`s third president in two years, said in October that regulators want the bank to sell off its real estate-oriented subsidiaries, including the bank`s crown jewel, Cenvill Development Corp.

In late May, a group of Cenvill executives led by Chairman William Landa offered to buy the company for $157 million, though that deal still is pending. State regulators have said they will hold a rare public hearing this month to hear comments about the possible change in control.